Consider the following situation: An auto loan falls into delinquency. The lender moves the account into collections. A debt collector calls the borrower, only to learn from a family member that the borrower died last month. The collector is forced to react to the news and initiate an awkward conversation about how the family intends to pay for the vehicle.
It is a nightmare scenario, and one that can easily be avoided. After all, lenders have a process for managing accounts that go delinquent. Why not have a process for identifying deceased borrowers before their accounts fall behind? Such a plan could avoid the costs associated with delinquency and collections while providing top-of-the-line customer care.